Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
US/Canada August PP contracts decline by 4.5¢/lb
US/Canada August PP contracts decline by 4.5¢/lb
Houston, 3 September (Argus) — August contracts in the US/Canada polypropylene (PP) market declined on average by 4.5¢/lb, including a 1.5¢/lb decline in August polymer-grade propylene (PGP) contracts as well as around 3¢/lb of PP margin compression. For most PP contracts any increase or decrease in PGP contracts is automatically passed along to PP customers. Anything in addition to the feedstock-related increase is considered a margin increase or decrease. PP producers were able to push through between 4-7¢/lb of margin increases to customers in April, due to supply concerns caused by global disruptions related to the US war with Iran. However, buyers have been pressing for at least some of that margin increase to come out since July, arguing that the feared supply constraints used to justify the increases never materialized. Initially, there had been an expectation that US and Canadian producers would significantly increase export volumes to help fill in supply gaps caused by outages in the Middle East. But global prices never rose enough to make PP exports out of North America attractive to producers. With material not moving offshore, supply in the North American market remained balanced-to-long. Spot domestic prices declined over July and August, creating pressure for contract margins to fall in August, buyers said. "I'm buying at back to almost January numbers on the spot side," said one buyer, who said the decline in spot prices helped to support the margin contraction. Buyers said they will push for the remainder of the April margin increase to come out by the year in annual contract negotiations. But producers said they believe some of the margin increase will need to stick in order to support higher operating rates. "We have seen additive costs go up, transportation costs go up," said a US producer. "We need to keep some [margin]." PP demand in North America has been steady. The market is still showing year-to-date growth of around 5.8pc through July, according to data from the American Chemistry Council. Market participants attribute the growth to a combination of fewer resin imports and fewer plastics finished goods coming into the US due to both new tariffs and supply disruptions caused by the US-Iran war. There are some concerns about future demand for certain plastics due to new tariffs announced by the US and Canada. While resin itself is not on the list of tariffed items, certain plastics items are, which could limit some demand at the converter level on both sides of the US/Canada border. So far, the situation has not resulted in any cancelled resin orders, according to one US PP producer. But buyers and producers are keeping a close eye on any new developments. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
SE Asia faces HDPE supply crunch on heavy turnaround
SE Asia faces HDPE supply crunch on heavy turnaround
Singapore, 2 September (Argus) — Southeast Asian high-density polyethylene (HDPE) supply has remained tight against a backdrop of heavy scheduled plant maintenances, prompting higher Chinese-origin HDPE offers to emerge in the region. Major Malaysian polyolefins firm Lotte Titan shut its 220,000 t/yr linear low-density PE- high density PE (LLDPE-HDPE) swing unit and its 115,000 t/yr HDPE unit at Pasir Gudang in late August for planned maintenance, according to sources close to the company. The 220,000 t/yr PE-1 unit, which only produces HDPE, will remain offline for about a month. The restart schedule for the 115,000 t/yr PE-3 HDPE unit is uncertain, while the company's LDPE PE-2 unit is operating at 60-65pc. Fellow Malaysian producer Petronas Chemicals restarted subsidiary Petlin Malaysia's 255,000 t/yr LDPE unit at Kerteh in late August, after taking it offline in July. The company's 250,000 t/yr LLDPE-HDPE swing unit has also been partially idled, with 125,000 t/yr of HDPE capacity offline, but the restart date could not be confirmed. Elsewhere in the region, state-owned Thai petrochemical producer PTT Global Chemical (PTTGC) took its 300,000 t/yr HDPE line at Map Ta Phut offline in late August because of limited ethylene feedstock from its cracker, and is expected to restart on 9 September, sources close to the company said. PTTGC's polyolefins downstream assets include a 300,000 t/yr LDPE plant, two 400,000 t/yr LLDPE-HDPE swing units and HDPE units with a combined capacity of 850,000 t/yr. The maintenance plans are expected to reduce southeast Asian HDPE supply, with a combined 760,000 t/yr of nameplate capacity offline in early September. Coupled with rising crude and naphtha values, opportunistic Chinese sellers have started raising HDPE offers into southeast Asia. Sporadic Chinese-origin HDPE film offers emerged at $1,285/t cif Malaysia this week, up from $1,270/t cif Malaysia a week earlier. Argus assessed duty-free HDPE film prices at $1,200-1,325/t cfr southeast Asia on 28 August, stable from the previous week. By Zong Ming Shin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian Haldia Petrochemicals to lift LPG use at cracker
Indian Haldia Petrochemicals to lift LPG use at cracker
Mumbai, 31 August (Argus) — India's Haldia Petrochemicals (HPL) is looking to raise LPG use at its naphtha cracker in eastern India as it reassesses its feedstock slate following the start of the Iran war, chief executive Navanit Narayan told Argus . HPL is working with US-based technology provider Lummus to assess alternative feedstock options for its 700,000 t/yr naphtha-fed cracker, Narayan said on the sidelines of the Specialty Films and Flexible Packaging Global Summit and Exhibition in Mumbai, held on 26-27 August. US-based TCG is the controlling shareholder of both Lummus and HPL. The LPG share is still being discussed, Narayan said. "We never expected Middle Eastern [supplies] to be squeezed as much as they have been. About 50pc of our feedstock used to come from the wrong side of Hormuz." Middle East crude and product shipments have fallen sharply since the US-Iran war began in February. In 2024, HPL signed a 10-year agreement with QatarEnergy for 2mn t of naphtha supply. The company's trading team in Singapore secured sufficient cargoes from the spot market, with significant volumes sourced from Oman and the UAE, to keep the plant running, chief marketing officer Sanjiv Vasudeva said. HPL's relationships with domestic Indian refiners also helped the firm weather the crisis, he added. But for the longer term, it might be difficult to sustain using alternative naphtha supply sources, Narayan said. If HPL modifies its cracker, it would join several Asian competitors that are rethinking their strategies , including retrofits to improve feedstock flexibility. Rapid petrochemical capacity growth in China has sharpened pricing competition, especially in polyolefins, and squeezed margins for naphtha-based producers. Geopolitical uncertainty, including the Middle East crisis, has added to the pressure and accelerated market share losses for regional players. HPL is a key domestic polyolefins maker, with a combined linear-low density polyethylene (LLDPE) and high-density polyethylene (HDPE) capacity of 720,000t/yr. It also has a polypropylene (PP) production capacity of 340,000t/yr. Investment plans The company is also considering investments at its petrochemical complex in Haldia, in the West Bengal state, as it prepares for the commissioning of a 345,000/215,000 t/yr phenol/acetone plant. HPL expects the plant to be inaugurated in October, with meaningful volumes entering the market by November. "There will be a lot more investments that will follow, of different sizes and different chemicals," Narayan said, without disclosing further details. HPL remains confident about growth in eastern India and is evaluating specialised grades to meet customer needs, he added. HPL is also working with parent TCG on a new project in Cuddalore, Tamil Nadu, although it has yet to decide which products will be made there, Narayan said. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Petrocuyo dismisses Ensenada shutdown speculation
Petrocuyo dismisses Ensenada shutdown speculation
Sao Paulo, 21 August (Argus) — Argentinian polypropylene (PP) producer Petrocuyo has denied market rumors that its Ensenada plant will shut down indefinitely, saying the facility is scheduled only for a routine maintenance turnaround expected to last around two to three weeks. A company source told Argus that reports circulating in the market about a broader production stoppage were "totally incorrect" and stressed that the company was planning only a short maintenance outage. The source added that Petrocuyo has sufficient inventories to cover customer requirements and does not expect any significant impact on sales or regional supply during the maintenance period. The clarification comes amid heightened market speculation over the status of the Ensenada facility, given the importance of the facility within Argentina's polypropylene supply chain. According to the company source, operations outside the planned turnaround continue normally and the producer is not undertaking any extraordinary measures beyond its usual maintenance activities. The market reaction reflects broader uncertainty across the global polymers industry. Polypropylene producers in Latin America continue to face pressure from weak demand growth, abundant international supply and aggressive competition from imported material, particularly from Asia. These conditions have compressed margins across the value chain and fueled concerns whenever production outages emerge in the region. For Petrocuyo, however, the maintenance appears to be operational rather than structural. The company source said inventory levels remain adequate and downplayed the likelihood of any meaningful disruption to the market. The source also suggested that some of the rumors may stem from misinterpretations of routine maintenance activities in an environment already marked by oversupply and intense competition. Market participants are expected to continue monitoring the outage closely, given Petrocuyo's position as Argentina's sole polypropylene producer. While the Ensenada site is an important supplier of homopolymer PP to the domestic market, the company also operates its Luján de Cuyo plant in Mendoza, which remains in operation and produces a broader range of polypropylene grades. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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